GST will complete one year and since its implementation way back one year there have been some ambiguities that have come to fore and the centre has taken steps to check these. Also, time and again, to make it friendly for the end tax-payers, rates have been tweaked to serve the common man better.
1. Better tax structure and revenue rationalization to further up the tax realm: In a recent meet revenue secretary Hasmukh Adhia said as the revenue structure stabilizes across the country, steps will be taken to completely ward of f the highest tax slab and also at the same time merge the 12% and 18% tax slab to 16%.
The earlier cascading of tax structure has been thus got away with the implementation of GST providing a much needed relief to the end goods and services consumers.
2. Increased tax compliance with more taxpayer registration: As per the Economic Survey report, the registration has been facilitated and increased to now more than 110 lakh registrations as more registrations have been encouraged by the B2B segment. And also the smaller business class has chosen to register for GST and be tax complaint in order to avail the benefit of input tax credit.
3. Better revenue gain even at the State level: The revenue gains through the implementation of GST are higher at 1.14% in comparison to the pre-GST era of just about 0.9%. It is further put that the revenue growth so far since GST has come up has been 11%.
It is believed that growth at the States could have been higher in case they would have worked towards identifying tax gaps through data analytics study and re-structuring of commercial tax departments.
4. Transitional problems have been dealt with robustness: The system during its implementation has faced many headwinds and the GST Council, the apex body framing all the rules per se GST has been taking all the issues promptly.
The recent example being the return filing under the GST that in coming times will be simplified to accommodate a single policy instead of just one policy. Further more of the information will be sought in the GST annual return that can be used to check on compliance.